The program promises to give buyers two benefits.
First, buyers will get to own some beautiful NFTs featuring original colorful, animated images fashioned in the likeness of top musicians. Like any NFT, the value of those purchases will rise and fall depending on demand. Because supply is always limited, as long as demand for the NFTs rise, their resale value will increase too. They come in a range of different rarities, from vinyl album to one-of-a-kind diamond albums.
Those rarities do more than affect the resale value, though. They also dictate the number of pools in which the buyer can stake the NFT to receive a share of the song’s royalties.
Band Royalty has agreements with industry administrators, including ASCAP and BMI, who collect streaming and publishing royalties. Once the program receives the royalties, it pays them out proportionally according to the NFT stakes in the collection pool.
Stakers can stake their NFTs in one of three music pools. They can choose to take a share of the royalties generated from print music, from mechanical and public performances, or from synchronization to video. The minimum staking time is 90 days, but stakers can choose to keep their NFT staked for as long as five years. The longer the staking period, the more revenue they can generate.
Vinyl album NFTs, which make up 1,500 of the release, can be staked in one of the Band Royalty pools. Gold albums can be placed in two, while platinum and diamond albums can be staked in all three pools.
The NFTs will be available on OpenSea.io, the world’s largest NFT marketplace, which uses the Ethereum blockchain.
The venture marks a new direction for NFTs. While much of the focus of the new technology has been on collecting and admiring beautiful artworks, Band Royalty now allows fans to monetize their commitment. Not only are they able to build their collections, they’re also able to earn from them without having to sell them—and to get paid for their investment in their favorite musicians.
